About Structures

What is a Structured Settlement?

In a Structured Settlement in Canada the defendant or Casualty Insurance Company purchases an annuity from a major Canadian Life Insurance Company and the payments from that annuity are irrevocably directed to the injured party or claimant.

The monthly payments are designed to sustain the injured party for a protracted period and the recipient is effectively protected from losing, wasting or even giving away the settlement funds. In many cases we recommend a lifetime plan. These Structured Settlements guarantee that the claimant will never run out or “outlive” the money.

The Life Insurance Company and The Defendant Insurance Company both guarantee these payments that are a combination of return of capital and the interest that is generated over the term of the annuity. The claimant receives all of these payments completely tax-free.

The three most important attributes of a structure are: The unchangeable nature of the payments, the guarantees from major Life Insurance Companies and the tax-free status of the payments.

“…within 2 months of settlement (awards, lotteries, sweepstakes, insurance, inheritance) 25% of the recipients had nothing left… and within 5 years of settlement 90% had nothing left.”

Study by the American Life Insurance Industry